(For G12)

Schools Division of Parañaque City

Humanities and Social Sciences
Understanding Culture, Society and Politics
Second Quarter

Week 7
Economic Institutions and Non-State Institutions

Learning Competencies (Essential Competencies)

• Explain the forms and functions of state and non-state institutions

Objectives
At the end of this lesson, you are expected to:
• Identify economic institutions and non-state institutions
• Examine the functions of economic institutions and non-state institutions
• Realize the importance of economic institutions and non-state institutions
in our society

Let’s Recall
Let us review the previous lesson regarding social organizations.

Directions: Match the following definitions listed on the right to the concepts
listed on the left. Write the letter of the correct answer on your answer sheet.

1. an exclusive social group formed out of shared interest and A. in-group

identity

2. a type of formal organization in which a rational approach is B. out-group

used to handle large tasks

3. a social group associated with competition or opposition as C. bureaucracy

its nature is different from one’s own

4. consists of two or more individuals who identify with one D. organization

another and regularly interact as a result of shared norms,
values, and expectations

5. a state of being or a condition in which the various E. social group

institutions in society are functioning by their recognized or
implied purposes

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 Let’s Understand

ECONOMIC INSTITUTIONS

Economic institutions refer to groups or organizations that decide how goods and
services will be produced, generated, distributed, and purchased. Such institutions establish
and follow rules that organize the society’s economic activity. An example of such institution
is a country’s government that provides public goods and services to people.

Economic Systems
An economic system is a means by which societies or states organize and distribute
available resources, services, and goods across a geographic region or country. The
following are some practices or processes in an economic system:

RECIPROCITY
Reciprocity refers to the non-market exchange of products or services. Examples
include the Filipino concept of “utang na loob” (where when a person gives something
he/she needs, it is a must for Filipinos to return the favor) and trade activities between two
countries.
Types of Reciprocity
• Generalized
A type of reciprocity where one gives something without expecting something in
return. Gift-giving is an example of this type of reciprocity.
• Balanced
A type of reciprocity where one gives something with an expectation of an immediate
return. Barter or a supermarket transaction would be an example.
• Negative
A type of reciprocity where there is an attempt to get a more valued thing than
you give in return that may involve trickery, coercion, or hard bargaining . An
example is when a student superficially acts respectful, or even subservient,
towards a teacher in order to get high grades.

TRANSFER
Transfer refers to a change of ownership of an asset or a movement of funds and/or
assets from one account to another. Examples are pension benefits, housing, and health
care. The government as an economic institution also provides commercial goods to the
people in the form of public services and transfer payments.

REDISTRIBUTION
Redistribution is an economic exchange intended to distribute a society's wealth. An
example can be taxes collected by the government that are used to fund social services,
welfare benefits, and state infrastructures.

MARKET TRANSACTIONS
Market transaction refers to the exchange of goods and services through a market. A
market is an institution that brings together buyers and sellers of goods or services, who may
be either individuals or businesses.

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NON-STATE INSTITUTIONS

Non-state institutions refer to groups that are organized privately for the purpose of
providing goods and services to the members of society. Though they are not controlled by
the government, their activities are regulated through the laws of the state. Non-state
institutions include the following:

BANKS
Banks are financial institutions licensed to receive deposits and make loans. Banks
may also provide financial services such as wealth management, currency exchange, and
safe deposit boxes. There are several types of banks including retail, commercial, and
investment banks. In most countries, banks are regulated by the national government or
central bank.

CORPORATIONS
Corporations are organizations that are legally bound by an agreement to conduct
some type of business. It has a legal entity separate from its owners. The type of business
that a corporation wants to undertake depends on its articles of incorporation.

COOPERATIVES
Cooperatives are firms owned, controlled, and operated by a group of users united
voluntarily to meet their common economic, social, and cultural needs and aspirations
through a jointly owned enterprise.

TRADE UNIONS
Trade unions are organized associations of workers in a trade, group of trades, or
profession, formed to protect their rights and interests. These unions further aim to protect
the integrity of their trade, improve safety standards of their work, expose exploitation, and
achieve higher salary.

TRANSNATIONAL ADVOCACY GROUPS

Refers to an organization that exists to promote principled causes, ideas, and values.
Their goal is to give marginalized or powerless communities a voice in domestic and
international lawmaking.

DEVELOPMENT AGENCY
Development agencies are local or international groups or entities that are tasked to
pursue particular developmental agenda for a target community or state. They are an
institution that provides aid in support of a state’s economic growth and social progress.

INTERNATIONAL ORGANIZATION
International Organizations are institutions established by nation-states as voluntary
members and are formed through a formal agreement or treaty, with a goal to promote
cooperation and coordination among themselves. Affiliates of such organizations work
together for the development and management of their common interests.

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 Let’s Apply
Let us check what you have learned from this lesson.

Activity 1. Know the Processes in Economic Systems

Directions: Identify which process in economic system each concept pertains to. Write the
letter of your choice on your answer sheet.

A. reciprocity B. transfer C. redistribution D. market transaction

1. Barter 6. PhilHealth

2. Christmas exchange gift 7. customer loyalty

3. Divisoria 8. SM Malls

4. DSWD relief goods 9. state subsidy

5. Government Service Insurance System (GSIS) 10. tax

Activity 2. Spot the Nonstate Institution

Directions: Identify which nonstate institution each group pertains to. Write the letter of your
choice on your answer sheet.

A. Banks E. Transnational Advocacy Groups

B. Corporations F. Development Agency
C. Cooperative G. International Organization
D. Trade Unions

1. ABS-CBN 9. Philippine Animal Welfare Society (PAWS)

2. World Health Organization 10. Rural Bank of Batangas

3. ASEAN 11. Honda Parts Employees Credit Cooperative

4. Red Cross 12. Trade Union Congress of the Philippines

5. Amnesty International 13. Union Bank

6. Haribon Foundation 14. Philippine Rural Reconstruction Movement

7. Jollibee 15. San Dionisio Credit Cooperative

8. Kilusang Mayo Uno

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 Let’s Analyze
Directions: Examine the following pictures. Identify the issue being
presented and write one effect to our country’s economic institutions and
non-state institutions. (2 points each)

ISSUE

EFFECT

http://joannaruthbas.blogspot.com/2016/07/reaction-
essay-about-societal-issues.html
ISSUE

EFFECT

https://mrt3.com/index.php/9-news/118-editorial-
derailed.html
ISSUE

EFFECT

https://sites.tufts.edu/ihs/when-discussing-political-
corruption/

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 Let’s Create

To write an essay about your own thoughts and opinion on the

Goal positive and negative aspects of the Filipino culture of “UTANG
NA LOOB”
You are going to be an article contributor on the Filipino culture
Role
of “UTANG NA LOOB” to our society in a school paper
Audience Students, teachers, and parents
You are going to analyze how Filipino culture of “UTANG NA
Situation LOOB” positively and negatively affects our society’s current
socio-political situation
Product An essay

Standards Rubrics will be used for grading the essay

PROCEDURES IN WRITING AN ESSAY

• Write at least three (3) positive and three (3) negative aspects of the Filipino culture
of utang na loob and expound your ideas
• Write it in an essay format
• Write your essay on a sheet of paper (can be typewritten or handwritten)
• Be creative and engaging

ESSAY WRITING RUBRICS

CRITERIA 10 pts 9 pts 8 pts

Content Presented more than 3 Presented 2-3 The topic and
advantages and advantages and main ideas are
disadvantages and are disadvantages and are not presented
well supported by well supported by clearly.
detailed and accurate detailed and accurate
information. information.
Organization has an introduction, main main topic discussion, Main discussion
topic discussion, and and conclusion only only
conclusion

Let’s Try (Evaluation)

Directions: Read the questions and choose your answer from the given
choices. Write your answer on your answer sheet.

1. What refers to the process of change of ownership of an asset or a movement of funds

and/or assets from one account to another?
A. market transaction C. redistribution
B. reciprocity D. transfer

2. What institution brings together buyers and sellers of goods or services?

A. corporation C. government
B. firm D. market

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3. What organizations are legally bound by a charter to conduct a certain type of business?
A. banks C. development agency
B. corporations D. transnational advocacy groups

4. Which of the following is NOT a form of redistribution?

A. exchange gifts C. state infrastructures
B. social services D. welfare benefits

5. Which of the following is an example of generalized reciprocity?

A. Giving donations to typhoon victims C. Both A and B
B. Rescuing maltreated and abused animals D. Neither A nor B

6. Which is NOT a purpose of taxation imposed by the state?

A. for social equity
B. financing basic services
C. fund various public expenditures
D. fund travels and meetings of leaders

7. How are cooperative and trade union similar?

A. Both aim to provide loans C. Both aim to look after their welfare
B. Both aim to increase their wealth D. All of the above

8. Sam and Ken joined a group that promotes aiding children displaced by conflicts. What
type of non-state institution did they join?
A. cooperative C. international organization
B. development agency D. transnational advocacy groups

9. The Philippines has a law that supports the creation of UNION of workers within a
corporation that helps them to have a comfortable working condition. Which program is
NOT necessarily needed to achieve such goal?
A. free concert tickets C. health benefits
B. free shuttle service D. salary bonus

10. Among the following statements, which demonstrate what international agreements
among nations can positively contribute to the development of its participants?
I. promotion of peace and stability
II. sharing of technologies and resources
III. alliance against other group of nations
IV. embracing pan-cultural philosophies and mindset

A. I and II only C. I, II, IV

B. I, II, III D. I, II, III, IV